diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index a9ab00c2a5fa1..a51262c2ff014 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -941,8 +941,11 @@ importers:
   projects/js-packages/jetpack-cli:
     dependencies:
       chalk:
-        specifier: ^4.1.2
-        version: 4.1.2
+        specifier: ^5.4.1
+        version: 5.4.1
+      dotenv:
+        specifier: ^16.3.1
+        version: 16.4.7
       prompts:
         specifier: ^2.4.2
         version: 2.4.2
@@ -9588,6 +9591,10 @@ packages:
     resolution: {integrity: sha512-JvpYKUmzQhYoIFgK2MOnF3bciIZoItIIoryihy0rIA+H4Jy0FmgyKYAHCTN98P5ybGSJcIFbh6QKeJdtZd1qhA==}
     engines: {node: '>=12'}
 
+  dotenv@16.4.7:
+    resolution: {integrity: sha512-47qPchRCykZC03FhkYAhrvwU4xDBFIj1QPqaarj6mdM/hgUzfPHcpkHJOn3mJAufFeeAxAzeGsr5X0M4k6fLZQ==}
+    engines: {node: '>=12'}
+
   dunder-proto@1.0.0:
     resolution: {integrity: sha512-9+Sj30DIu+4KvHqMfLUGLFYL2PkURSYMVXJyXe92nFRvlYq5hBjLEhblKB+vkd/WVlUYMWigiY07T91Fkk0+4A==}
     engines: {node: '>= 0.4'}
@@ -21746,6 +21753,8 @@ snapshots:
 
   dotenv@16.0.2: {}
 
+  dotenv@16.4.7: {}
+
   dunder-proto@1.0.0:
     dependencies:
       call-bind-apply-helpers: 1.0.1
diff --git a/projects/js-packages/jetpack-cli/.gitattributes b/projects/js-packages/jetpack-cli/.gitattributes
new file mode 100644
index 0000000000000..992b114f7ffa8
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/.gitattributes
@@ -0,0 +1,6 @@
+# Files not needed to be distributed in the package.
+.gitattributes    export-ignore
+node_modules      export-ignore
+
+# Files to exclude from the mirror repo
+/changelog/**     production-exclude
diff --git a/projects/js-packages/jetpack-cli/.gitignore b/projects/js-packages/jetpack-cli/.gitignore
new file mode 100644
index 0000000000000..140fd587d2d52
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/.gitignore
@@ -0,0 +1,2 @@
+vendor/
+node_modules/
diff --git a/projects/js-packages/jetpack-cli/CHANGELOG.md b/projects/js-packages/jetpack-cli/CHANGELOG.md
new file mode 100644
index 0000000000000..721294abd00ad
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/CHANGELOG.md
@@ -0,0 +1,7 @@
+# Changelog
+
+All notable changes to this project will be documented in this file.
+
+The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/)
+and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
+
diff --git a/projects/js-packages/jetpack-cli/README.md b/projects/js-packages/jetpack-cli/README.md
new file mode 100644
index 0000000000000..71453fa986d24
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/README.md
@@ -0,0 +1,18 @@
+# Jetpack
+
+
+## How to install Jetpack plugin on your site
+### Installation From Git Repo
+
+## Contribute
+
+## Get Help
+
+## Security
+
+Need to report a security vulnerability? Go to [https://automattic.com/security/](https://automattic.com/security/) or directly to our security bug bounty site [https://hackerone.com/automattic](https://hackerone.com/automattic).
+
+## License
+
+Licensed under [GNU General Public License v2 (or later)](./LICENSE.txt).
+
diff --git a/projects/js-packages/jetpack-cli/bin/jp.js b/projects/js-packages/jetpack-cli/bin/jp.js
index b955faeae8120..4c98478ae1975 100755
--- a/projects/js-packages/jetpack-cli/bin/jp.js
+++ b/projects/js-packages/jetpack-cli/bin/jp.js
@@ -1,12 +1,18 @@
 #!/usr/bin/env node
 
 import { spawnSync } from 'child_process';
-import fs from 'fs';
+import fs, { readFileSync } from 'fs';
 import { dirname, resolve } from 'path';
 import process from 'process';
+import { fileURLToPath } from 'url';
 import chalk from 'chalk';
+import dotenv from 'dotenv';
 import prompts from 'prompts';
 
+// Get package.json path relative to this file
+const __dirname = dirname( fileURLToPath( import.meta.url ) );
+const packageJson = JSON.parse( readFileSync( resolve( __dirname, '../package.json' ), 'utf8' ) );
+
 /**
  * Check if a directory is the monorepo root.
  *
@@ -45,7 +51,6 @@ const findMonorepoRoot = startDir => {
  * @throws {Error} If clone fails
  */
 const cloneMonorepo = async targetDir => {
-	// eslint-disable-next-line no-console
 	console.log( chalk.blue( 'Cloning Jetpack monorepo...' ) );
 	const result = spawnSync(
 		'git',
@@ -83,15 +88,15 @@ const initJetpack = async () => {
 
 	try {
 		await cloneMonorepo( targetDir );
-		// eslint-disable-next-line no-console
+
 		console.log( chalk.green( '\nJetpack monorepo has been cloned successfully!' ) );
-		// eslint-disable-next-line no-console
+
 		console.log( '\nNext steps:' );
-		// eslint-disable-next-line no-console
+
 		console.log( '1. cd', response.directory );
-		// eslint-disable-next-line no-console
+
 		console.log( '2. jp docker up' );
-		// eslint-disable-next-line no-console
+
 		console.log( '3. jp docker install' );
 	} catch ( error ) {
 		throw new Error( `Failed to initialize Jetpack: ${ error.message }` );
@@ -103,6 +108,12 @@ const main = async () => {
 	try {
 		const args = process.argv.slice( 2 );
 
+		// Handle version flag
+		if ( args[ 0 ] === '--version' || args[ 0 ] === '-v' ) {
+			console.log( chalk.green( packageJson.version ) );
+			return;
+		}
+
 		// Handle 'init' command specially
 		if ( args[ 0 ] === 'init' ) {
 			await initJetpack();
@@ -113,19 +124,145 @@ const main = async () => {
 		const monorepoRoot = findMonorepoRoot( process.cwd() );
 
 		if ( ! monorepoRoot ) {
-			// eslint-disable-next-line no-console
 			console.error( chalk.red( 'Could not find Jetpack monorepo.' ) );
-			// eslint-disable-next-line no-console
+
 			console.log( '\nTo get started:' );
-			// eslint-disable-next-line no-console
+
 			console.log( '1. Run', chalk.blue( 'jp init' ), 'to clone the repository' );
-			// eslint-disable-next-line no-console
+
 			console.log( '   OR' );
-			// eslint-disable-next-line no-console
+
 			console.log( '2. Navigate to an existing Jetpack monorepo directory' );
 			throw new Error( 'Monorepo not found' );
 		}
 
+		// Handle docker commands on the host
+		if ( args[ 0 ] === 'docker' ) {
+			// Commands that should run in the container
+			const containerCommands = [ 'build-image', 'install' ];
+			if ( containerCommands.includes( args[ 1 ] ) ) {
+				const result = spawnSync(
+					resolve( monorepoRoot, 'tools/docker/bin/monorepo' ),
+					[ 'pnpm', 'jetpack', ...args ],
+					{
+						stdio: 'inherit',
+						shell: true,
+						cwd: monorepoRoot,
+					}
+				);
+
+				if ( result.status !== 0 ) {
+					throw new Error( `Command failed with status ${ result.status }` );
+				}
+				return;
+			}
+
+			// Run config generation first if this is an 'up' command
+			if ( args[ 1 ] === 'up' ) {
+				// Create required directories
+				fs.mkdirSync( resolve( monorepoRoot, 'tools/docker/data/jetpack_dev_mysql' ), {
+					recursive: true,
+				} );
+				fs.mkdirSync( resolve( monorepoRoot, 'tools/docker/data/ssh.keys' ), { recursive: true } );
+				fs.mkdirSync( resolve( monorepoRoot, 'tools/docker/wordpress' ), { recursive: true } );
+
+				const images = [
+					{ name: 'mariadb:lts' },
+					{ name: 'automattic/jetpack-wordpress-dev:latest' },
+					{ name: 'phpmyadmin/phpmyadmin:latest', platform: 'linux/amd64' },
+					{ name: 'maildev/maildev', platform: 'linux/amd64' },
+					{ name: 'atmoz/sftp', platform: 'linux/amd64' },
+				];
+
+				for ( const image of images ) {
+					const inspect = spawnSync( 'docker', [ 'image', 'inspect', image.name ], {
+						stdio: 'ignore',
+					} );
+					if ( inspect.status !== 0 ) {
+						console.log( chalk.blue( `Pulling ${ image.name }...` ) );
+						const pullArgs = [ 'pull', image.name ];
+						if ( image.platform ) {
+							pullArgs.splice( 1, 0, '--platform', image.platform );
+						}
+						const pull = spawnSync( 'docker', pullArgs, { stdio: 'inherit' } );
+						if ( pull.status !== 0 ) {
+							throw new Error( `Failed to pull ${ image.name }` );
+						}
+					}
+				}
+
+				const configResult = spawnSync(
+					resolve( monorepoRoot, 'tools/docker/bin/monorepo' ),
+					[ 'pnpm', 'jetpack', 'docker', 'config' ],
+					{
+						stdio: 'inherit',
+						shell: true,
+						cwd: monorepoRoot,
+					}
+				);
+
+				if ( configResult.status !== 0 ) {
+					throw new Error( 'Failed to generate Docker config' );
+				}
+			}
+
+			// Get project name (from docker.js)
+			const projectName = args.includes( '--type=e2e' ) ? 'jetpack_e2e' : 'jetpack_dev';
+
+			// Load versions from .github/versions.sh
+			const versionsPath = resolve( monorepoRoot, '.github/versions.sh' );
+			const versions = fs.readFileSync( versionsPath, 'utf8' );
+			const versionVars = {};
+			versions.split( '\n' ).forEach( line => {
+				const match = line.match( /^([A-Z_]+)=(.+)$/ );
+				if ( match ) {
+					versionVars[ match[ 1 ] ] = match[ 2 ].replace( /['"]/g, '' );
+				}
+			} );
+
+			// Build environment variables (from docker.js)
+			const envVars = {
+				...process.env,
+				// Load from default.env
+				...( fs.existsSync( resolve( monorepoRoot, 'tools/docker/default.env' ) )
+					? dotenv.parse( fs.readFileSync( resolve( monorepoRoot, 'tools/docker/default.env' ) ) )
+					: {} ),
+				// Load from .env if it exists
+				...( fs.existsSync( resolve( monorepoRoot, 'tools/docker/.env' ) )
+					? dotenv.parse( fs.readFileSync( resolve( monorepoRoot, 'tools/docker/.env' ) ) )
+					: {} ),
+				HOST_CWD: monorepoRoot,
+				PHP_VERSION: versionVars.PHP_VERSION,
+				COMPOSER_VERSION: versionVars.COMPOSER_VERSION,
+				NODE_VERSION: versionVars.NODE_VERSION,
+				PNPM_VERSION: versionVars.PNPM_VERSION,
+				COMPOSE_PROJECT_NAME: projectName,
+				PORT_WORDPRESS: args.includes( '--type=e2e' ) ? '8889' : '80',
+			};
+
+			// Build the list of compose files to use
+			const composeFiles = [
+				'-f',
+				resolve( monorepoRoot, 'tools/docker/docker-compose.yml' ),
+				'-f',
+				resolve( monorepoRoot, 'tools/docker/compose-mappings.built.yml' ),
+				'-f',
+				resolve( monorepoRoot, 'tools/docker/compose-extras.built.yml' ),
+			];
+
+			const result = spawnSync( 'docker', [ 'compose', ...composeFiles, ...args.slice( 1 ) ], {
+				stdio: 'inherit',
+				shell: true,
+				cwd: resolve( monorepoRoot, 'tools/docker' ),
+				env: envVars,
+			} );
+
+			if ( result.status !== 0 ) {
+				throw new Error( `Docker command failed with status ${ result.status }` );
+			}
+			return;
+		}
+
 		// Run the monorepo script with the original arguments
 		const result = spawnSync(
 			resolve( monorepoRoot, 'tools/docker/bin/monorepo' ),
@@ -141,7 +278,6 @@ const main = async () => {
 			throw new Error( `Command failed with status ${ result.status }` );
 		}
 	} catch ( error ) {
-		// eslint-disable-next-line no-console
 		console.error( chalk.red( error.message ) );
 		process.exitCode = 1;
 	}
diff --git a/projects/js-packages/jetpack-cli/changelog/.gitkeep b/projects/js-packages/jetpack-cli/changelog/.gitkeep
new file mode 100644
index 0000000000000..e69de29bb2d1d
diff --git a/projects/js-packages/jetpack-cli/changelog/initial-version b/projects/js-packages/jetpack-cli/changelog/initial-version
new file mode 100644
index 0000000000000..fb1837c901e51
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/changelog/initial-version
@@ -0,0 +1,4 @@
+Significance: patch
+Type: added
+
+Initial version.
diff --git a/projects/js-packages/jetpack-cli/composer.json b/projects/js-packages/jetpack-cli/composer.json
new file mode 100644
index 0000000000000..42127f0f1f562
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/composer.json
@@ -0,0 +1,37 @@
+{
+	"name": "automattic/jetpack-cli",
+	"description": "Development tools for the Jetpack monorepo",
+	"type": "library",
+	"license": "GPL-2.0-or-later",
+	"require": {},
+	"require-dev": {
+		"automattic/jetpack-changelogger": "@dev"
+	},
+	"autoload": {
+		"classmap": [
+			"src/"
+		]
+	},
+	"scripts": {
+		"phpunit": [
+			"./vendor/phpunit/phpunit/phpunit --colors=always"
+		],
+		"test-coverage": [
+			"php -dpcov.directory=. ./vendor/bin/phpunit --coverage-php \"$COVERAGE_DIR/php.cov\""
+		],
+		"test-php": [
+			"@composer phpunit"
+		]
+	},
+	"repositories": [
+		{
+			"type": "path",
+			"url": "../../packages/*",
+			"options": {
+				"monorepo": true
+			}
+		}
+	],
+	"minimum-stability": "dev",
+	"prefer-stable": true
+}
diff --git a/projects/js-packages/jetpack-cli/eslint.config.mjs b/projects/js-packages/jetpack-cli/eslint.config.mjs
new file mode 100644
index 0000000000000..5ad3c9460cc3f
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/eslint.config.mjs
@@ -0,0 +1,11 @@
+import makeBaseConfig from 'jetpack-js-tools/eslintrc/base.mjs';
+
+export default [
+	...makeBaseConfig( import.meta.url, { envs: [ 'node' ] } ),
+	{
+		rules: {
+			'no-console': 'off',
+			'n/no-process-exit': 'off',
+		},
+	},
+];
diff --git a/projects/js-packages/jetpack-cli/package.json b/projects/js-packages/jetpack-cli/package.json
index aa1e4d78e476e..bd1ea239b98cc 100644
--- a/projects/js-packages/jetpack-cli/package.json
+++ b/projects/js-packages/jetpack-cli/package.json
@@ -1,6 +1,6 @@
 {
 	"name": "@automattic/jetpack-cli",
-	"version": "0.1.0-beta.1",
+	"version": "0.1.0-alpha",
 	"description": "Docker-based CLI for Jetpack development",
 	"bin": {
 		"jp": "bin/jp.js"
@@ -10,7 +10,8 @@
 	],
 	"type": "module",
 	"dependencies": {
-		"chalk": "^4.1.2",
+		"chalk": "^5.4.1",
+		"dotenv": "^16.3.1",
 		"prompts": "^2.4.2"
 	},
 	"publishConfig": {
diff --git a/projects/js-packages/jetpack-cli/src/index.jsx b/projects/js-packages/jetpack-cli/src/index.jsx
new file mode 100644
index 0000000000000..9ad1e06860e5c
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/src/index.jsx
@@ -0,0 +1,2 @@
+// Put your code in this `src/` folder!
+// Feel free to delete or rename this file.
diff --git a/projects/js-packages/jetpack-cli/tests/index.test.js b/projects/js-packages/jetpack-cli/tests/index.test.js
new file mode 100644
index 0000000000000..d34c1ab3fc541
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/tests/index.test.js
@@ -0,0 +1,7 @@
+// We recommend using `jest` for testing. If you're testing React code, we recommend `@testing-library/react` and related packages.
+// Please match the versions used elsewhere in the monorepo.
+//
+// Please don't add new uses of `mocha`, `chai`, `sinon`, `enzyme`, and so on. We're trying to standardize on one testing framework.
+//
+// The default setup is to have files named like "name.test.js" (or .jsx, .ts, or .tsx) in this `tests/` directory.
+// But you could instead put them in `src/`, or put files like "name.js" (or .jsx, .ts, or .tsx) in `test` or `__tests__` directories somewhere.
diff --git a/projects/js-packages/jetpack-cli/tests/jest.config.cjs b/projects/js-packages/jetpack-cli/tests/jest.config.cjs
new file mode 100644
index 0000000000000..b5ceacda1f7e0
--- /dev/null
+++ b/projects/js-packages/jetpack-cli/tests/jest.config.cjs
@@ -0,0 +1,7 @@
+const path = require( 'path' );
+const baseConfig = require( 'jetpack-js-tools/jest/config.base.js' );
+
+module.exports = {
+	...baseConfig,
+	rootDir: path.join( __dirname, '..' ),
+};
diff --git a/tools/cli/commands/docker.js b/tools/cli/commands/docker.js
index 9d0291aee259c..8626a47a37427 100644
--- a/tools/cli/commands/docker.js
+++ b/tools/cli/commands/docker.js
@@ -554,6 +554,15 @@ const execJtCmdHandler = argv => {
 	}
 };
 
+/**
+ * Generate Docker configuration files.
+ *
+ * @param {object} argv - The command line arguments
+ */
+async function generateConfig( argv ) {
+	await setConfig( argv );
+}
+
 /**
  * Definition for the Docker commands.
  *
@@ -561,7 +570,7 @@ const execJtCmdHandler = argv => {
  * @return {object} Yargs with the Docker commands defined.
  */
 export function dockerDefine( yargs ) {
-	yargs.command( {
+	return yargs.command( {
 		command: 'docker <cmd>',
 		description: 'Docker stuff',
 		builder: yarg => {
@@ -832,9 +841,15 @@ export function dockerDefine( yargs ) {
 						const envOpts = buildEnv( argv );
 						composeExecutor( argv, opts, envOpts );
 					},
+				} )
+				.command( {
+					command: 'config',
+					description: 'Generate Docker configuration files',
+					builder: yargCmd => defaultOpts( yargCmd ),
+					handler: async argv => {
+						await generateConfig( argv );
+					},
 				} );
 		},
 	} );
-
-	return yargs;
 }
diff --git a/tools/docker/Dockerfile.monorepo b/tools/docker/Dockerfile.monorepo
index 9517dd98e3f53..6214b49eec44c 100644
--- a/tools/docker/Dockerfile.monorepo
+++ b/tools/docker/Dockerfile.monorepo
@@ -16,6 +16,11 @@ RUN --mount=type=cache,target=/var/lib/apt/lists/,sharing=private \
     export DEBIAN_FRONTEND=noninteractive \
     && apt-get update \
     && apt-get install -y curl gpg language-pack-en-base software-properties-common \
+    # Install Docker CLI
+    && install -m 0755 -d /etc/apt/keyrings \
+    && curl -fsSL https://download.docker.com/linux/ubuntu/gpg | gpg --dearmor -o /etc/apt/keyrings/docker.gpg \
+    && chmod a+r /etc/apt/keyrings/docker.gpg \
+    && echo "deb [arch="$(dpkg --print-architecture)" signed-by=/etc/apt/keyrings/docker.gpg] https://download.docker.com/linux/ubuntu "$(. /etc/os-release && echo "$VERSION_CODENAME")" stable" > /etc/apt/sources.list.d/docker.list \
     && add-apt-repository ppa:ondrej/php \
     && curl -fsSL https://deb.nodesource.com/gpgkey/nodesource-repo.gpg.key | gpg --dearmor -o /etc/apt/keyrings/nodesource.gpg \
     && apt-get update \
@@ -23,6 +28,8 @@ RUN --mount=type=cache,target=/var/lib/apt/lists/,sharing=private \
         git \
         unzip \
         zip \
+        docker-ce-cli \
+        docker-compose-plugin \
         "php${PHP_VERSION}" \
         "php${PHP_VERSION}-cli" \
         "php${PHP_VERSION}-curl" \
diff --git a/tools/docker/bin/monorepo b/tools/docker/bin/monorepo
index 0dbd651285523..8a6cc39d39c8d 100755
--- a/tools/docker/bin/monorepo
+++ b/tools/docker/bin/monorepo
@@ -14,6 +14,9 @@ echo "Running command in monorepo container: $*"
 # Source the versions file
 source "$MONOREPO_ROOT/.github/versions.sh"
 
+# Export variables needed by docker-compose
+export HOST_CWD="$MONOREPO_ROOT"
+
 # Build the image if it doesn't exist
 if ! docker image inspect jetpack-monorepo:latest >/dev/null 2>&1; then
     if [ "${BUILD_LOCAL:-}" = "1" ]; then
@@ -37,9 +40,13 @@ fi
 docker run --rm -it \
     -v "$MONOREPO_ROOT:/workspace" \
     -v "$MONOREPO_ROOT/tools/docker/data/monorepo:/root" \
+    -v /var/run/docker.sock:/var/run/docker.sock \
     -w /workspace \
     -e TERM=$TERM \
     -e COLORTERM=$COLORTERM \
+    -e DOCKER_ROOT="$MONOREPO_ROOT/tools/docker" \
+    -e HOST_CWD="$MONOREPO_ROOT" \
+    -e WORKSPACE_PATH="$MONOREPO_ROOT" \
     -e NPM_CONFIG_USERCONFIG=/root/.npmrc \
     -e NPM_CONFIG_CACHE=/root/.npm \
     -e PNPM_HOME=/root/.local/share/pnpm \
diff --git a/tools/docker/docker-compose.yml b/tools/docker/docker-compose.yml
index f0eb1ac222808..9e22a06fe6a17 100644
--- a/tools/docker/docker-compose.yml
+++ b/tools/docker/docker-compose.yml
@@ -52,7 +52,7 @@ services:
 
   monorepo:
     build:
-      context: .
+      context: ${HOST_CWD}/tools/docker
       dockerfile: Dockerfile.monorepo
       args:
         PHP_VERSION: ${PHP_VERSION}
@@ -60,5 +60,5 @@ services:
         NODE_VERSION: ${NODE_VERSION}
         PNPM_VERSION: ${PNPM_VERSION}
     volumes:
-      - ../..:${WORKSPACE_PATH:-/workspace}
-    working_dir: ${WORKSPACE_PATH:-/workspace}
+      - ${HOST_CWD}:/usr/local/src/jetpack-monorepo
+    working_dir: /usr/local/src/jetpack-monorepo